CITY OF KELOWNA
BYLAW NO. 10189
Five Year Financial Plan 2009-2013
The Municipal Council of the City of Kelowna, in open meeting assembled, enacts as follows:
1.
Schedule "A" attached hereto and forming part of this bylaw is hereby declared to be the
Five Year Financial Plan of the City of Kelowna for the period January 1st, 2009 to and
including December 31st, 2013.
2.
Schedule “B” attached hereto and forming part of this bylaw is hereby declared to be the
Statement of Objectives and Policies in accordance with Section 165 (3.1) of the
Community Charter.
3.
This bylaw may be cited for all purposes as the "Five Year Financial Plan Bylaw, 20082012, No. 10189".
Read a first, second and third time by the Municipal Council this
Adopted by the Municipal Council of the City of Kelowna this
Mayor
City Clerk
Bylaw No. 10189 – Page 2
Bylaw No. 10189 – Page 3
Schedule “B”
Statement of Objectives and Policies
In accordance with Section 165(3.1) of the Community Charter, municipalities are required to
include in the Five Year Financial Plan, objectives and policies regarding each of the following:
(a) For each of the funding sources described in Section 165(7) of the Community Charter,
the proportion of total revenue that is proposed to come from that funding source;
(b) The distribution of property value taxes among the property classes that may be subject
to taxes; and
(c) The use of permissive tax exemptions.
Funding Sources
Table 1 shows the proportion of total revenue proposed to be raised from each funding source
in 2009. Property taxes and fees and charges make up the largest proportion of revenue. Both
have advantages in that they are stable, relatively simple to administer and are generally
understood by citizens. Other sources of revenue may be variable and fluctuate from year to
year depending on the economic influences and capital programs undertaken by the City.
Objectives
• Investigate other potential funding sources and securing opportunities for additional
revenues.
• Begin to decrease the municipality’s reliance on property taxes and explore opportunities
to increase the percent of total revenue received from user fees and charges and senior
government grants.
• Maintain a fees and charges structure whereby increases are applied on a regular basis
in line with inflation, while ensuring that service levels remain competitive and affordable.
Policies
• Pursue non-property tax revenues whenever possible through applying for government
grants and charging user fees at appropriate levels.
• Perform regular reviews of revenue generating areas for appropriate application of rate
increases.
o Planning and Development Fees.
o Recreation & Cultural Services – application of BC Consumer Price Index.
o Utility Revenues – ensure Utilities operate as self supporting enterprise funds.
• Increase provincial and federal grant revenue through maximum utilization of the City’s
Grant Manager position.
Table 1: Sources of Revenue
Revenue Source
Property Value Tax
Parcel Taxes
Fees & Charges
Borrowing Proceeds
Other Sources
Reserve Funds/Accounts
Total
Revenue $ (000’s)
90,050
1,955
106,591
58,242
73,397
110,423
440,658
% of Revenue
20%
1%
24%
13%
17%
25%
100%
Bylaw No. 10189 – Page 4
Distribution of Property Tax Rates
Table 2 outlines the council approved municipal tax distribution policy for 2009 and the relative
proportion of tax revenues. Projected revenues from the combined residential, recreational and
Non-Profit classes, provides the largest proportion of property tax revenue. This cumulative
class represents the largest tax assessment base and hence utilizes the majority of City
services.
Objectives
• Provide an effective tax change that is the same for all property classes.
• Ensure that business and light industry property tax ratios remain below the average of
BC municipalities with populations greater than 50,000.
• Allow for a maximum ratio cap of 3.00:1 for the Light Industrial/Business class.
Policies
• Council will annually review and modify tax class ratios to provide an effective tax
change that is the same for all classes.
• The impacts on other property classes from administering a ratio cap on the Light
Industrial/Business classes will be reported to Council during the annual Tax Distribution
Policy review.
• Regularly review and compare the City’s relative position in terms of distribution of taxes
to other similarly sized municipalities in British Columbia.
Table 2: Tax Class Ratios and Projected Revenues
Property
Class
01/08/03
02
04
05/06
09
91
Description
Res/Rec/NP/SH
Utilities
Major Industrial
Light Ind/Bus/Other
Farm Land
Farm Improvements
Total Revenues
Permissive Tax Exemptions
2009
Tax
Class Ratios
1.0000:1
6.1541:1
3.9580:1
2.7177:1
0.1579:1
0.5503:1
Tax Revenue
(000’s)
62,307
406
333
26,607
11
386
90,050
2008
Tax
Class Ratios
1.0000:1
6.1729:1
3.9701:1
2.7067:1
0.1562:1
0.5535:1
The City has an existing permissive tax exemption policy which guides the administration and
approval of permissive tax exemptions. Some of the eligibility criteria for permissive tax
exemptions that are outlined in the policy include the following:
• The applicant must qualify for an exemption under the provisions of the Community
Charter.
• The organization receiving an exemption must be a registered non-profit society or
registered charity, as the support of the municipality will not be used for commercial and
private gain.
• The tax exemption must demonstrate benefit to the community and residents of the City
by enhancing the quality of life (spiritually, educationally, socially and culturally), while
delivering services economically to the citizens within the community.
Bylaw No. 10189 – Page 5
The value of tax exemptions provided by Council for 2009 (based on 2008 assessment totals
and tax rates) is $2,786,902. The following breaks down the total into various exemptions
categories and the exemption value for the category.
Schedule A – Places of Worship - $613,203
Schedule B – Private schools - $491,854
Schedule C – Hospitals - $ 901,094
Schedule D – Special Needs Housing - $ 54,592
Schedule E – Social Services - $194,181
Schedule F – Public Park, Athletic or Recreational - $ 207,481
Schedule G – Cultural - $270,595
Schedule H – Partnering, Heritage or Other Special Exemptions Authority - $53,902
In order to encourage the restoration and preservation of commercial, industrial and institutional
building properties that meets the criteria outlined in the Heritage Building Tax Incentive
Program policy can receive a tax exemption.
The establishment of the Revitalization Tax Exemption policy allows qualifying properties within
the Downtown Urban Centre and Rutland Urban Centre areas to receive a tax exemption.
Objectives
•
•
Continue to provide permissive tax exemptions to support qualifying organizations that
improve the well-being of the community.
The municipality will continue to provide heritage and revitalization tax exemptions for
qualifying properties.
Policies
•
•
•
Permissive tax exemptions will be considered to encourage activities that: (a) are
consistent with the quality of life objectives of the municipality; (b) provide direct access
and benefit to the public; and (c) would otherwise be provided by the municipality.
To meet the city’s commitment to the ongoing restoration, preservation and maintenance
of buildings and structures on its Heritage Register, eligible properties will be considered
for a tax exemption.
To support the city’s revitalization program of the Downtown Urban Centre and Rutland
Urban Centre, qualifying properties will be considered for a tax exemption.